Soybean oil prices rallied today after the WASDE report was released showing lower soybean yields and a reduced carryout for the 20/21 crop year. October futures settled at 33.61/lb, up just over a ½ cent from yesterday’s close. The October heating oil contract was relatively steady with yesterday’s close at $1.0896. While the higher bean oil prices are supportive of higher animal fat prices into the biodiesel sector, the flat heating oil market and recent downturn will do little to incentivize the biodiesel market to pay higher prices.
Corn prices at the CME also moved higher on a production cut in today’s report. December futures were up 3.5 cents, settling at $3.6850/bu. At 400 percent of the price corn, a 3.5 cent increase in corn prices translates into an added ¼ cent value to the feed fat market.
Countering the upward pressure in the market via the SBO and corn markets is the supply. Hog slaughter is estimated at 2.34 million head this week with…
11.21.2024
Domestic US biodiesel blending helps lift October RFS RIN production
US domestic biodiesel blending of 147.5 million gallons in October produced a monthly high of 221.2 million renewable identification number (RIN) credits for January-October. This was 11.5% above September...
11.21.2024
CWG trades lower as broader animal fats markets hold steady
The US animal fats and oils markets held steady on Thursday November 21, with limited trading as attention shifted toward broader macroeconomic factors and...
11.21.2024
October commercial cattle, hog production above 2023
US animal protein prices were steady on Thursday November 21. Limited trade was reported from market sources due to the proximity of the extended Thanksgiving holiday weekend in the...